Boeing shares fell 4% after US President Donald Trump revealed that China had agreed to buy 200 planes, much lower than expected. The type of aircraft and when they will be delivered remain unclear.
Earlier reports suggested discussions were underway between Chinese and US officials over a potential sale of around 500 Boeing planes.
After President Xi and Trump met on Thursday, the US president told Fox News: “One thing he agreed to today is that he’s going to order 200 planes…200 big ones.” »
Shortly after the announcement, shares of the aircraft manufacturer fell 4.1 percent in stock trading.
Reports suggest China is negotiating a major deal to buy jets from European aircraft maker Airbus.
According to Reuters, Boeing data reveals that the Chinese placed 127 orders on average each year between 2005 and 2017; However, following escalating geopolitical tensions and the trade war between the world’s two largest economies, the Chinese order has been reduced to an average of 51 per year since 2018.
China is the world’s second-largest aviation market and Boeing’s competitors are scrambling to strike deals.
Given China’s population and growing demand for air travel, China will need to buy at least 1,000 new planes this year, according to some analysts.
According to market projections from Boeing and Airbus, the country will need at least 9,000 new airliners by 2045.
